assume that a two-firm duopoly dominates the market for a product, and that the firms face a linear market demand curve

Q2 Assume that a two-firm duopoly dominates the market for a product, and that the firms face a linear market demand curve P=625-0.5Q (Market Demand) where Q is quantity of products, and P is the price per unit. Thus Q=QA+QB. For simplicity, also assume that both firms produce an identical product, have no fixed costs and marginal cost MCA=MC:=$25. In this circumstance, total revenues for Firm A and Firm B are respectively TRA=PQA=625QA-0.5Q3-0.5QAQB TRB=PQB=625QB-0.5Q3 0.5QAQB Marginal revenues for Firm A and Firm B are respectively OTRA=625-QA-0.5QB MRA= QA MRB- TRE=625-QB-0.5QA QB (1). Derive the output reaction curves for Firms A and B. (15 points) (2). Calculate the Courtnot market equilibrium price-output solutions. (15 points)